Posts Tagged ‘Economic growth’

Figures reported in the German newspaper Die Zeit give an interesting insight into immigration in Europe’s most powerful economy. Massive immigration is compensating the demographic effects of a falling birth rate. Key points:

965,908 foreigners immigrated into Germany in 2012, mostly from Poland, Romania, Bulgaria and also southern European countries such as Italy, Spain, Portugal and Greece, which have been hard hit by their local banking crises. That’s the equivalent of the population of Cologne.

Turks used to flood into Germany, but last year more Turks left Germany than entered, since the thriving Turkish economy offers opportunities at home. Immigration from Islamic countries has become insignificant.

Among German nationals, more left the country than returned.

Because of the declining birth rate, Germany needs net immigration of between 250,000 and 400,000 yearly in order to prevent the population from declining, which would depress economic growth and lead to an ageing population. 200,000 more people die in Germany than are born.

The moral, say Die Zeit, is that this huge immigration is beneficial despite resulting social strains, and Germany should do more to make immigrants welcome.

Meanwhile, in Britain, new legislation is under preparation to make it harder for foreigners to immigrate. We shall see which policy is right …

Switzerland’s economy grew by 0.7% in the first quarter of 2012, after 0.5% and 0.3% in the last two quarters of 2011. The Swiss did this without having first to rein in excessive government spending. Nor is the government running a big economic stimulation programme.

Switzerland’s direct democracy, which provides for citizens to vote on practically any issue affecting their lives, may be a factor. Voters know that if they take the easy way in spending, they will have to take painful decisions later. There is no escape from the consequences and nobody else to blame. This could be why budgets do not get out of control.

Unlike truculent Britain, Switzerland is pragmatic in its relations with European neighbours. It does not belong to the European Union, but has bilateral agreements aligning it with most of EU legislation.

Switzerland belongs to the Schengen agreement, so its frontiers are open to EU citizens. With a few temporary exceptions, Europeans can freely immigrate to work in Switzerland. As a result, there is a plentiful supply of highly-qualified workers. Local analysts consider this is one important reason why Swiss companies succeed well in export markets.

As if to underline the point, the latest report from the International Institute for Management Development (IMD) ranked Switzerland third behind Hong Kong and the United States in economic competitiveness. Germany is ninth and the rest of Europe nowhere.

Responsible, steady and open to the world – perhaps this tiny country has lessons for all of us.